In a masterstroke and cut throat competition the Telecommunications companies BHARTI AIRTEL, VODAFONE and IDEA has reduced the ring duration for all outgoing calls from 35-40 seconds to just now 25 seconds only. Thus a shorter ring will means that rival Telecomm user to do a return call thus earning the interconnect usage fee. All this new change is made to match the RELIANCE JIO INFOCOMM. All this new move is related to the battle of INTERCONNECT USAGE FEE.
WHAT IS INTERCONNECT USAGE FEE?
It refers to the “interconnection” that telecom players share with its own telecom services, equipment with other Telecomm providers. For this whole system is controlled and managed by “TRAI” plus it also regulates IUC.
Thus the interconnect usage fee is charge paid by service provider from whose service provider call is made to the other service provider who receives the call.
IUC is thus one of the main source of income for telecom companies and currently the charge is Rs. 0.14 per minute for domestic calls while International call charges is Rs. 0.53 per minute.
Present war between telecom companies
Bharti AIRTEL has thus reduce the ring duration while Vodafone has done in some areas already. In response to this move JIO says that it network has been bombarded with much more missed calls from other Telecomm companies users as they offers free voice services. It’s a smart move by Bharti and AIRTEL to combat the JIO move and thus by saving their IUC revenue.